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B.C. has 'critical' interest in mill |
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Premier Gordon Campbell has wriiten North Cowichan council about his
interest in low municipal taxes for heavy industry, like the Crofton
mill.
courtesy Catalyst (photo of mill)
By Aaron Bichard
The Pictorial (Duncan)
Oct 22 2005
North Cowichan Mayor Jon Lefebure is taking a letter from Premier
Gordon Campbell as a forewarning of the government's interests, but is
only slightly worried about the implications.
The municipality, along with councils in other Catalyst mill towns -
Port Alberni, Powell River and Campbell River - received a letter Sept.
22 outlining the government's interest in lower taxes for heavy
industry.
Campbell's letter states "the province has a critical interest in
building a competitive economic climate conducive to greater industrial
development," and talks about removing economic growth barriers.
"I think it was a little heads up that it is still a provincial
concern," Lefebure said. "It's something we've been aware of and I have
a concern they may step in like they did with the port authorities."
In 2004 the government passed the Port Property Tax Act capping the
amount municipalities could charge in property taxes to ports.
"Strictly speaking the letter is not threatening but if the government
were to get involved it would create some funding issues for North
Cowichan," Lefebure said. "We've adopted a policy of looking at the
taxes each year and have slowly been making small shifts to
residential."
Currently, municipalities can determine property taxes and charge heavy industry whatever portion they feel necessary.
Approximately 49 per cent of North Cowichan's taxes are paid by heavy
industry. Ninety per cent of that $7 million is paid by Catalyst.
Catalyst Crofton division vice-president Don McKendrick feels the shift is too slow.
"It's no secret we are continuing to lobby both provincial and
municipal governments for lower taxes," he said. "We are looking for
fair and competitive taxes. We aren't looking for a tax break."
McKendrick said Catalyst is currently paying $8 million a year in taxes
to North Cowichan, School District 79 and the Cowichan Valley Regional
District.
"If we were located anywhere else in the province, we'd pay half that,"
he said. "That means our competitors have a $4 million advantage. We
want to compete on a level playing field."
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